The global soy derivatives market size is projected to reachUSD 344.05 billion in 2028. The demand for soy derivatives is anticipated to rise exponentially in the near future because of the high demand for biodiesel as an alternative to fossil fuel. Fortune Business Insights™ published this information in a new study, titled, “Soy Derivatives Market, 2021-2028.” As per the study, the market stood at USD 204.11 billion in 2020. It would exhibit a CAGR of 6.8% in the forecast period between 2021-2028.
Archer-Daniels-Midland Company Enters Joint Venture with Marfrig
In June 2020, the Archer-Daniels-Midland Company (ADM), a food processing firm based in Chicago, joined hands with Marfrig, a reputed beef producer to develop a joint venture calledPlantPlus Foods. It would deliver plant-based products to South America and North America. As per a company official, “The new joint venture will expand our leadership capabilities and enhance our position in the global market. It will also help us to deliver a complete range of solutions, flavors, and ingredients as per the consumer demand.”
Drivers & Restraints-
Increasing Government Initiatives to Shift to Soybean Cultivation would Aid Growth
Several companies operating in the market are investing in research and development activities to refine their quality and production technology. They will be able to broaden their business capabilities by improving technologies required during processing. At the same time, they are also striving to improve yields and productivity of soybean protein and oil.
Furthermore, in China, the government is taking various initiatives to surge the areas under soybean cultivation. For instance, the State Council released a plan for revitalizing soybean farming in February 2019. The policy declares that rural cooperatives and large planterscan take efforts to shift to soybean cultivation. Such initiatives by regulatory bodies would help to drive the soy derivatives market growth in the upcoming years. However, soy contains high unsaturated fatty acids that can harm human health. Coupled with this, the availability of sucrose may obstruct the demand for soy derivatives.
High Demand for Meat and Livestock Feed to Favor Growth of Soy Meal Segment
Based on the type, the market for soy derivatives is classified into soy meal, soy oil, soy milk, soy flour, and others. Out of these, the soy meal segment held 78.43% in terms of the soy derivatives market share in 2020. The rising demand for livestock feed and meat is set to propel growth. Also, soy mealsareaffordable and have high-protein content. The segment generated 82.35%in China. The soy oil segment, on the other hand, procured9.50% in China in 2020 owing to the rising usage in margarine, baked, and fried products.
Rising Product Acceptability and Consumer Base to Accelerate Growth in Asia Pacific
- Asia Pacific: In 2020, the region earned USD 92.11 billion in terms of revenue and would dominate in the near future. The rising consumer base, intense competition, and product acceptability have compelled renowned companies to enhance their product offerings in the region. Hence, they are trying to expand their footprints to cater to the high demand for soy derivatives. The region is anticipated to grow with a CAGR of 6.87% in the forthcoming years.
- North America: It would remain in the second position fueled by the increasing innovations in the industry, surging prevalence of lactose intolerance, and rising adoption of vegetarian or vegan diet. As per a Gallup survey conducted in January 2020, the U.S. vegan population was 3% of adults over 65 years, 1% of those 50–64, 4% of those 30–49, and 3% of those aged 18–29 years.
- Europe: It would exhibit the highest CAGR in the forecast period on account of the rising government support for producing biofuel. Additionally, the ban on processed animal proteins, such as meat and bone meal in animal feed owing to the outbreak of bovine spongiform encephalopathy would surge the demand for soy meal in the region.
Key Players Aim to Broaden Portfolios& Market Products throughJoint Ventures
The moderately consolidated market for soy derivatives houses a few companies, such as Cargill Incorporated, Bunge Limited, and Archer-Daniels-Midland Company. They are mainly focusing on joint ventures and acquisitions with portfolio broadening and product marketing. Below are the two latest industry developments:
- May 2020:Elekeirozsigned an agreement with Nexoleum to deliver plasticizers by using epoxidized soybean oil as feedstock.
- March 2018:Nasoyaintroduced its new vegan tofu cubes called ‘Toss’ables’to provide convenience and variety to kitchens across America. It would help the company to satiate the demand for plant-based food items.
A list of prominent soy derivatives providers present in the global market:
- Archer Daniels Midland Company (Illinois, United States)
- Cargill, Incorporated (Minnesota, United States)
- CHS Inc. (Minnesota, United States)
- Bunge Limited (Missouri, United States)
- Louis Dreyfus Company B.V. (Netherlands)
- Wilmar International Ltd. (Singapore)
- AG Processing Inc. (Nebraska, United States)
- DuPont Nutrition and Health (Delaware, United States)
- Noble Group (Hong Kong)
- Tyson Foods (Arkansas, United States)
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